Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-08-10

Secretary Fairchild has issued a clrcu-
lar announcing that the interest due Sep
temher ! and December l. 1887, on the
four and one half per cent bonds of the
United States, October /, 1887. and Janu-
airy l. 1888. on The four per cent. bonds
and January /, 1888 or the bonds issued
in aid of the Pacific railroads, will be
prepaid on and after August 18th,
1887, with a rebate at the rate
of two per cent. per annum on the
amounts prepaid. Proposals are asked for
the sale of government bonds for the sink
ing fund Secretary Fairchild says the an
ticipation of interest is for the purpose of
getting rid of the surplus. The latter OPP
GRAFTON, he said, is only. what any good
business man would do to discount
his obligations The anticipation OF inter-
est is one of the two means given to the
secretary of the treasury for disposing of
the surplus funds and he regarded it as
the cheapest and most advantageous. The
interest covered BY the circular amounts
to S22. 319, 1884. 1t is impossible Just now
to state the exact amount of the rebate
The slnkIngfund requirements will
amount to about $40, 900. 00Oin addition to
the 800, 000,0 900 of 8 per cent bonds already
applied. The surplus. said Mr. Fairchild,
can be put out only through the co-ope
ration of the bondholders, and if they do
not accept the terms OF the proposition
made to them, it would seem that they
are not in very great need of money.
This action of the secretary has been
caused by desire to relieve the strln-
gency in the money market, which has
been very marked for some time His
offer TO buy bonds will act as a safety
valve in case of panic. 1t would nat
urally be supposed that it is an easy
matter to procure money on government
bonds, but such has not always been the
case as there are no such fools anywhere
as lenders of money when they are
little scared. The New York Times IL
Illustrates this fact by few "reminiscences.
1t says: People acquainted with that
which Is most graphic, not to say tragic,
in Wall street history, can recall how one
day, decade and half ago, a veteran
fnancier hurried hilher and thither and
all over the stock exchange district, i'm
pOrtaning banks and pleading with in>
Vestors-a million of dollars in govern
ment bonds stretched out in his
hands. Not penny could he raise upon
them; the treasury department wasn't a
terrOrized and dared not make bid even
on the cOuntry's securities. The money
corners were triumphant, and brave old
Augustus Schnell, unable to get funds.
had to 90 TO his couferers and order the
shutters closed on one of the strongest
trust companies in the street. Later,
president of the New York Stock ex,
change saw his banking house go TO ruin,
being unable TO raise ready money on
governments during semi-panic that
money cornerers precIpitated, and in
1884 William Il. Vanderbilt wore his very
soul in desperate endeavors to raise
money on $4,000, 900 of governments
that were hawked for days through Wall
street, no bidders or purchasers any
where. His boys" were in trouble;
their brokers were ON the edge of ruin;
yet, though he had more government
bonds than he could carry, the needed
funds were not obtainable till slow work
ing influences led to outside assistance,
Then the "b0ys" were bailed out and
the re brokers were saved